TJX Says Ernie Herrman to Succeed Meyrowitz as CEO Next Yearby
TJX Cos., the owner of the T.J. Maxx discount retail chain, said Chief Executive Officer Carol Meyrowitz will step down next year and be succeeded by Ernie Herrman.
Meyrowitz, 61, will become executive chairman, and Herrman will retain his current title of president, the Framingham, Massachusetts-based company said Wednesday in a statement. The moves are effective Jan. 31.
During her nearly nine-year stint as CEO, Meyrowitz capitalized on a shift to discount shopping by expanding the company’s Marshalls, HomeGoods and T.J. Maxx chains. With its focus on low prices, TJX held up better than other retailers during the recession and the shaky economy that followed. TJX shares have risen almost fivefold since Meyrowitz took over as CEO in January 2007, compared with a gain of about 40 percent for the Standard & Poor’s 500 Index during that time.
Herrman, 54, has been with TJX since 1989 and became president in January 2011.
“We see minimal execution risk as Meyrowitz will still be active in TJX decisions,” Oliver Chen, an analyst at Cowen & Co., said in a note to clients Wednesday. “New CEO Ernie Herrman’s long tenure at TJX ensures that TJX’s global growth opportunity, everyday execution, talent focus and corporate culture will be unwavered.”
TJX rose 1.6 percent to $71.90 at the close in New York.